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Global Agenda

World Economic Forum


Annual Meeting 2016
Mastering the Fourth
Industrial Revolution
Davos-Klosters, Switzerland 20-23 January
Contents

3 Preface

4 Co-Chairs of the Annual Meeting 2016

5 Facts & Figures

6 Davos Highlights

8 Mastering the Fourth


Industrial Revolution

14 Addressing Global Security


Issues

20 Solving Problems of the Global


Commons

26 The Humanitarian Imperative

32 Global Challenges

42 Arts & Culture

44 Reports launched at Davos

46 Acknowledgements

47 Further Information

48 Upcoming Meetings

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REF 300116
Preface

For 46 years, the World Economic mastering the speed, scale and
Forum has brought together leaders force at which the Fourth Industrial
and leading thinkers in Davos-Klosters, Revolution is reshaping the economic,
Switzerland, to exchange ideas and social, ecological and cultural contexts
seek answers to the fundamental in which we live; addressing a rapidly
economic questions of the times. changing security and humanitarian
landscape in which emerging
The Davos agenda has reflected the technologies also play a key role;
world’s focus on managing successive and solving problems of the global
waves of economic crisis: stabilizing commons, from climate change to
the financial system; countering the future of the internet, through new
concerns of regional disintegration; models of public-private cooperation
Klaus Schwab and increasing urgency about and the application of breakthrough
Founder and Executive Chairman unemployment, unfulfilled social science and technology solutions.
contracts and inequality. From year to
year, the tide of technology has been This report serves as a valuable
rising, bringing with it promise and peril document to stimulate deeper thinking
for the global economy. on the Fourth Industrial Revolution.
We gratefully acknowledge our
The technology wave has finally Partners, Members and participants,
crested. At the Annual Meeting 2016, as well as the Meeting Co-Chairs,
under the theme Mastering the Fourth for their leadership and guidance
Industrial Revolution, technology throughout the event. Thanks also to
shifted from a supporting role to the leaders from the Forum communities,
spotlight. More than 2,500 participants including Social Entrepreneurs, Global
from all walks of life came together Shapers, Young Global
in Davos to prepare for a future of Leaders and Technology Pioneers,
exponentially disruptive change as who played a significant role in the
assumptions about growth models design and development of the various
were overturned, the international sessions.
W. Lee Howell balance of power continued to fray,
Head of Global Programming and scientific and technological On behalf of the Managing Board,
Member of the Managing Board
breakthroughs stood poised to thank you again for your participation
transform economies and societies. and working together in the
collaborative and collegial Spirit of
The Meeting provided an unparalleled Davos.
platform for co-design, co-creation
and collaboration for global leaders We look forward to welcoming you at
from across business, government, our regional events and other meetings
international organizations, academia throughout the coming year, as well as
and civil society. in Davos in 2017.

The programme focused on learning


from experts, peers and unique
experiences, as participants shared
new approaches for managing three
essential forces for the future stability
and sustainability of the national,
regional and global economies:

Mastering the Fourth Industrial Revolution 3


Co-Chairs of the
Annual Meeting 2016

Mary Barra Sharan Burrow Satya Nadella


Chairman and Chief Executive General Secretary, Chief Executive Officer,
Officer, General Motors International Trade Union Microsoft Corporation, USA
Company, USA Confederation (ITUC), Brussels

Hiroaki Nakanishi Tidjane Thiam Amira Yahyaoui


Chairman and Chief Executive Chief Executive Founder and Chair,
Officer, Hitachi, Japan Officer, Credit Suisse, Al Bawsala, Tunisia
Switzerland

4 World Economic Forum Annual Meeting 2016


Facts & Figures
Annual Meeting 2016 in numbers

2,500 participants

1,500 business leaders

300 public figures including



40 heads of state
and government

over 280 sessions

from over 140 countries 100 webcast online


250 media representatives

Mastering the Fourth Industrial Revolution 5


Davos Highlights

Four winners of the Top panel to meet


Crystal Award 2016 water challenge

Four distinguished artists were honoured at the UN Secretary-General Ban Ki-moon and World Bank
22nd annual World Economic Forum Crystal Awards President Jim Yong Kim announced at Davos a high-
ceremony for their achievements and exemplary level panel to mobilize urgent action on water and
commitment to improving the state of the world sanitation-related Sustainable Development Goals.
through their craft. American actor Leonardo DiCaprio, Chaired by the presidents of Mauritius and Mexico, the
a passionate advocate for environmental sustainability, panel will comprise heads of state and government
was recognized for his leadership in tackling the both from developed and developing countries, with
climate crisis. Chinese actress Yao Chen, who support from the World Economic Forum’s networks
dedicates her time as UNHCR Goodwill Ambassador and platforms. According to the UN and World Bank,
for China, received the award for her leadership in at least 663 million people lack access to safe drinking
raising awareness of the global refugee crisis. Award- water and 2.4 billion people lack access to basic
winning musician will.i.am, who advocates for good sanitation services, such as toilets or latrines. To meet
education through the i.am angel Foundation, was the targets set out in SDG6 – ensuring the availability
honoured for his leadership in creating educational and sustainable management of water and sanitation
opportunities for the underserved. World-renowned for all – the panel will focus on public-policy dialogue,
artist Olafur Eliasson, known for his large-scale private-sector models and civil society initiatives, as
installations and designs, won the award for his well as promote efforts to mobilize financial resources
leadership in creating inclusive communities. The and scale up investments.
award ceremony was followed by a concert performed
by acclaimed cellist Yo-Yo Ma with an ensemble of https://sustainabledevelopment.un.org
master musicians, including Sergio and Odair Assad,
Sandeep Das, Johnny Gandelsman, Cristina Pato,
Kathryn Stott and Wu Tong.

http://www.weforum.org/agenda/2016/01/meet-
the-davos-2016-crystal-award-winners

6 World Economic Forum Annual Meeting 2016


For session summaries, videos and meeting-related documents,
plus Forum insights, visit https://toplink.weforum.org

RED campaign raises Strengthening


$350m in 10 years global trade

Since its launch a decade ago at the World Economic The World Economic Forum and International
Forum Annual Meeting 2006, the RED campaign has Centre for Trade and Sustainable Development
raised more than $350 million to fight HIV/AIDS in (ICTSD) launched in Davos a detailed blueprint
Africa. The proceeds, with donations coming from for strengthening the global trade and investment
several Forum Partners, go directly towards life-saving system. The set of proposed reforms outlined in
anti-retroviral treatments for those that cannot afford the Strengthening the Global Trade and Investment
it. AIDS has killed more than 34 million people since System in the 21st Century report describes
its discovery in 1981, and today, more than 37 million a pathway for better aligning and eventually
people are living with HIV, with mothers continuing reintegrating the world’s myriad regional free trade
to pass on the virus to their children. Co-founded and investment agreements, as well as for adapting
by Bono, lead singer of rock bank U2, RED’s mission rules and institutions to recent changes in the world
is to make it easy for people to come together and economy, such as global value chains, the digital
join the fight against the virus. He is also the founder economy, services, climate change and Sustainable
of ONE, an advocacy organization campaigning for Development Goals. The proposals include measures
government policy that saves lives and improves that support progress on many global issues,
futures in the poorest parts of the world – in line with including boosting global growth and employment,
the Forum's mission. ensuring food security, combating climate change
and environmental degradation, and strengthening
https://red.org the legitimacy of the global trading system. The report
is part of the Forum-ICTSD’s E15 Initiative, which has
engaged over 400 experts from around the world in 15
expert groups and three cross-cutting task forces, in
partnership with 16 other institutions.

http://www.weforum.org/global-challenges/
international-trade-and-investment/projects/e15-
initiative

The Fourth Industrial Revolution 7


Mastering the Fourth Industrial Revolution

The Humane Age

To address the key global challenges confronting the world


effectively and sustainably, mastering the Fourth Industrial
Revolution – the wave of technological advances that are
changing the way we live, work, stay alive and interact with each
other and machines – is essential.

Why any company, organization or research and treatments across a Big data focus
individual must get a handle on the wide range of fields including genetics,
rapid advances in technology and not engineering and health insurance, Participants across sessions
let the opportunities created by the has to be tapped. Applying a big-data pinpointed the big-data aspect of
Fourth Industrial Revolution slip by was approach should yield ways to ramp the Fourth Industrial Revolution as
made clear from the first session of the up progress in fighting the disease by a common and urgent priority. The
Annual Meeting 2016. Just one week speeding up research and improving proliferation of mobile devices, online
after President Barack Obama asked access to new treatments. But to sensors and other means of collecting
him to take charge of “mission control” glean valuable insights from the vast information digitally has made it
for America’s new “moonshot” to cure amounts of data will require agreeing possible to obtain detailed, accurate
cancer, Vice-President Joe Biden on common standards for collection, and real-time data on everything from
appeared at the Congress Centre interpretation and access. purchases to patient care. Digital
in Davos to facilitate a discussion of platforms, including sharing-economy
what the initiative’s priorities should be “We can do more if this information apps such as Uber and supply-and-
with leading scientists, doctors and is widely shared,” Biden said. José demand matching services such as
technologists. He put across plainly Baselga, Physician-in-Chief and Chief Airbnb, allow for instant interaction,
the need for warp speed. “Our goal is Medical Officer at the Memorial Sloan- information exchange and closer
to make a decade worth of advances Kettering Cancer Center, noted that and broader collaboration, be it to
in five years,” he said. “We are not not enough work has been done to develop a rapid test for people with
looking for incremental changes; we analyse data on cancer cell mutations. a fever or connect a driver with a car
are looking for quantum leaps.” “In the computer science revolution, to a passenger who needs to get
medicine has been left behind,” he somewhere fast.
The key outcome of the gathering: get said.
a handle on the data. The treasure
trove of information on cancer cases,

“I believe the auto industry will change more in


the next five to 10 years than it has in the last 50.”

Mary Barra
Chief Executive Officers and Chairman of General Motors, USA; Co-Chair of the Annual Meeting 2016

8 World Economic Forum Annual Meeting 2016


In the session on internet models and approaches to public and For Meeting Co-Chair Amira Yahyaoui,
fragmentation, US Secretary of private governance, Burrow argued. Founder and Chair of citizens action
Commerce Penny Pritzker warned of Technology has to be shared equitably group Al Bawsala, the question of what
the dangers of digital Balkanization. to create opportunities and not foster makes us human is not relevant. “We
Preserving the free flow of data greed, she stressed. are at a crossroads,” she said. “We
online, she said, is not just about should not just stay human; we should
large companies but is also about A bigger opportunity become better humans.”
small and medium-sized businesses.
“They are very much threatened. However, blaming technology for such
Entrepreneurship and innovation are a problems as the rise of inequality or
big part of what the internet enables. It unemployment would be a mistake,
is imperative that we keep the internet said Erik Brynjolfsson, Director of the
flowing since it undergirds business.” Initiative on the Digital Economy at the
Massachusetts Institute of Technology
Natarajan Chandrasekaran, Chief (MIT) Sloan School of Management.
Executive Officer and Managing “The biggest misconception is the
Director of Tata consultancy Services, idea that technology will come for our
put it more starkly. “The future of the jobs. The bigger opportunity is to use
human race is tied to the future of the technology to enhance performance
internet,” he said. If the international and augment human activity.” He
community is not able to sort out concluded: “Technology can be used
governance issues including standards to destroy and create jobs. There is no
for data protection, we will miss a huge economic law that everyone is going
opportunity. “The more we delay, the to benefit equally. You have to put the
more we are going to lose.” policies in place.”

The dark side Leaders must wake up, Marc R.


Benioff, Chairman and Chief Executive
Fourth Industrial Revolution Officer of US technology company
technologies and the many ways Salesforce, declared. “We are in
they can interact with each other and a leadership crisis. We are seeing
enhance human performance can technological shifts and changes on
be used to achieve solutions from a scale we have never seen on this
the mundane to the marvellous. We planet. These require severe and
can create robots that pick only ripe extreme leadership. Countries that are
blackberries and ones that will interact having a problem are those with the
with an autistic child. We can use weakest leadership.” Henry T. Greely, a
genetics to clone a sheep and to cure Stanford University law professor, said:
Huntington’s disease. We can use “All of us need to begin to understand
apps to find the nearest café and to and grapple with how we want to
locate a survivor of an earthquake or shape these technologies.”
reunite a refugee family.
Goal is to stay human
But there is the dark side. Terrorists
have employed the same messaging The norms, rules and regulations, and
apps that permit free and easy even the thinking about the moral and
communication to coordinate attacks. ethical challenges that are needed
The internet is a source of both to shape the world of the Fourth
knowledge for good and information Industrial Revolution have to be done “To maintain sustainable
of use to those who mean ill. And of quickly, without succumbing to hype
course, there is the old argument that or helplessness. The overarching goal
economic development,
technology kills jobs and increases has to be stay human – or rather, we need to shift our focus
inequality. as Greely put it, “to become more from speed to quality.”
humane”. Justine Cassell, Associate
“The central question is whether Dean at Carnegie Mellon University's
technology can be harnessed for School of Computer Science, said: “It Li Yuanchao
Vice-President of the
systems change,” said Annual Meeting is through comparison with robots that People's Republic of
Co-Chair Sharan Burrow, General we will know what it is to be human.” China
Secretary of the International Trade
Union Confederation (ITUC). “Can we
get to a zero-carbon, zero-poverty
world?” Not with current business

Mastering the Fourth Industrial Revolution 9


10 World Economic Forum Annual Meeting 2016
AI reality check: no need to
download your brain just yet
The arrival of supercomputers that can play poker (bluffing conversations, then it could be the ideal personal assistant,”
included), velvet-voiced digital personal assistants that said Stuart Russell, a Professor of Computer Science at the
answer questions and give directions, driverless cars and University of California, Berkeley.
even robot sex partners has stirred excitement about
artificial intelligence (AI). Add to the hype recent warnings Autonomous cars undergoing trials may have been spotted
from such science and technology icons as Stephen on the streets of San Francisco but are not yet ready for
Hawking and Elon Musk of the consequences of giving market. A driver cannot leave everything to AI and still has
machines moral responsibilities and the danger that to take over when the computer in a vehicle gets confused
human-made automatons could go out of control and turn because of its inability to distinguish people in proximity
on their creators. Science fiction contains many macabre from objects, or is in a situation where it has to deal with the
predictions – could a person’s knowledge, memory and unexpected and make a split-second decision that could
personality be downloaded, one's very being preserved in a entail an ethical choice. Government approval for driverless
system of circuits? cars to be commercialized is still years away.

Let’s not rush too far ahead of reality. It is true that 2015 Robots may be common in modern factories and
was a big year for AI. For the first time, drivers could take automatons that learn are becoming more sophisticated.
their hands off the steering wheel and have a computer But robots that can do something simple – such as pick up
do the work. Major progress was made in getting drinks or pick berries from a bush – are still not a reality. For
machines to do the boring parts of white-collar work such computers, it turns out, “manipulation is a lot harder than
as legal document searches, to read facial expressions driving a car down a freeway,” said Andrew Moore, Dean
and emotions, and even to negotiate a deal with other of the School of Computer Science at Carnegie Mellon
machines. Last year, it could be argued, AI went from University. “To be as dexterous as a human being, a robot
curiosity to conventional – or at least something more visible has to have complex hands. It’s very expensive to develop
in daily life. that technology.”

“We are starting to see these technologies move out of While algorithms and hardware capability are improving
the data centres and into the world,” said Matthew Grob, rapidly, “we don’t have anything to worry about machines
Executive Vice-President and Chief Technology Officer taking over in the near future,” Grob said. Yet it is hard to
at US wireless technologies company Qualcomm. Zhang overhype AI’s impact. “It will change our lives, mostly for the
Yaqin, President of Baidu, the Chinese search engine better,” he predicted.
company, agreed: “AI is really going mainstream.”
Russell said: “Everything we have that is good in our lives
AI has not yet taken over our lives. Some of the exciting is the result of our intelligence. So if AI can amplify our
products and services are not yet as intelligent as we intelligence, then we could be talking about a golden age of
may imagine. Siri, Apple’s Speech Interpretation and humanity.”
Recognition Interface program, which serves as a mobile
personal assistant and knowledge curator, is a far cry from
J.A.R.V.I.S., the seemingly omnipotent intelligent computer
in the Iron Man films. Siri voices prepared answers to
a prepared set of questions. “If Siri really understood
your questions and listened in on person-to-person

Mastering the Fourth Industrial Revolution 11


01: Jim Yong Kim, Professor and
President, World Director, Korea Advanced
Bank, Washington DC; Institute of Science
Daniel Kablan Duncan, and Technology (KAIST),
Prime Minister of Côte Republic of Korea
d’Ivoire; Sharan Burrow, 06: Mary Barra, Chief
General Secretary, Executive Officer,
International Trade General Motors
Union Confederation Company, USA
(ITUC), Brussels; Paul 07: Gary D. Cohn,
Polman, Chief Executive President and Chief
Officer, Unilever, United Operating Officer,
Kingdom; Laurent Fabius, Goldman Sachs, USA
Minister of Foreign 08: Adam Posen,
Affairs and International President, Peterson
Development of France; Institute for
Erna Solberg, Prime International Economics,
Minister of Norway; Ban USA; Douglas W.
Ki-moon, Secretary- Elmendorf, Dean,
General, United Nations, Harvard Kennedy School,
New York Harvard University, USA
02: David Cameron, 09: Participants at a
Prime Minister of the roundtable discussion
United Kingdom 10: Forum Debate: The
03: Luis Alberto Moreno, Privatization of Science
President, Inter-
American Development
Bank, Washington DC
04: H.M. Mathilde, Queen
of the Belgians; Tejpreet
01 Singh Chopra, President
and Chief Executive
Officer, Bharat Light and
Power, India
02 03
05: Hilde Schwab,
Chairperson and
Co-Founder, Schwab
Foundation for Social
Entrepreneurship,
Switzerland; Lee Sang-
Yup, Distinguished

04 05

06

07

08

09 10

12 World Economic Forum Annual Meeting 2016


01: L. Markus Karlsson, Director, Mahindra
Business Editor, France & Mahindra, India; 01
24, France; Rowsch Zachary Bookman,
N. Shaways, Deputy Chief Executive Officer,
Prime Minister of Iraq; OpenGov
Elif Shafak, Author, 04: Mario Draghi,
Turkey; Sir Mohammad President, European
Jaafar, Chairman and Central Bank, Frankfurt;
Chief Executive Officer, Lionel Barber, Editor,
Kuwaiti Danish Dairy Financial Times, United
Company, Kuwait; Justin Kingdom
Welby, Archbishop of 05: Susumu
Canterbury, United Tonegawa, Picower
Kingdom; Jean-Paul Professor of Biology
Laborde, Assistant and Neuroscience,
Secretary-General and Massachusetts Institute
Executive Director of of Technology (MIT), USA
the Counter-Terrorism 06: Irene B. Rosenfeld,
Committee Executive Chairman and Chief
Directorate (United Executive Officer,
Nations) Mondelez Global, USA
02: Participants at a 07: Manuel Valls, Prime
virtual reality session Minister of France
03: Andrew R. Sorkin, 08: Christine Lagarde,
Columnist, New York Managing Director,
Times, USA; Paul International Monetary
Kagame, President of Fund (IMF), Washington
the Republic of Rwanda; DC
Satya Nadella, Chief
Executive Officer,
Microsoft Corporation,
USA; Sheryl Sandberg,
Chief Operating Officer
and Member of the
Board, Facebook,
USA; Anand Mahindra,
02
Chairman and Managing

04

03

05

07

06

11

08

Mastering the Fourth Industrial Revolution 13


Addressing Global Security Issues

A template for peace


in the cyber age
It is bad enough to constantly read news about terrorist attacks,
territorial disputes and ethnic conflicts. How much worse can
things get if the tools of technology and the interconnected
world were to be deployed in the service of hatred and violence?

The answer to the above question is: Global security experts are getting Strategies for action
unimaginably worse. If you want to educated quickly. In December,
wipe out everyone in New York City unknown parties launched a What can be done? Diplomats, security
today, said Stuart Russell, Professor cyberattack on the power grid of experts, academics, IT specialists,
of Computer Science at University of Ivano-Frankivsk region in Ukraine, military and intelligence leaders and
California, Berkeley, you would need denying more than 100,000 people even hackers participating in the
a million machine guns wielded by a electricity for six hours. And the Annual Meeting of the World Economic
million soldiers supported by 5 million terrorist group Da'esh, also known as Forum in Davos looked at the issue
civilians and backed by a nation-state ISIS, is using social media and mobile from a number of angles and came up
to pay for all of it. communications to recruit young with a variety of approaches.
people in Western countries.
But as the Fourth Industrial Revolution First, the immediate threats to global
deepens, it will be possible for just Great power geopolitics, in which state security must be neutralized. US
one human being to pay for a million players and their proxies use force Secretary of Defense Ashton Carter
autonomous machine guns equipped or intimidation to expand (or protect) said that the Da’esh strongholds
with artificial intelligence – and order territory and influence, is unfortunately of Mosul in Iraq and Arak in Syria,
them to attack New York. “Any skilled alive and well. But the Fourth the “parent tumour” of the terrorist
engineer can take control remotely Industrial Revolution is changing the network, will be retaken in 2016.
of any connected 'thing'," explained traditional ways that states anticipate The template will be the successful
Andre Kudelski, Chairman and Chief and plan for security risks, and the campaign by Iraqi forces to defeat
Executive of digital security firm actions they can take to protect their Da’esh in the city of Ramadi last year.
Kudelski Group. “Society has not yet people. Complicating matters is the
realized the incredible scenarios this emergence of extremist non-state Second, the roots of extremism
capability creates.” actors such as Da’esh. and other existential threats to
global security must be studied and

“For workers, there are no jobs


on a dead planet.”

Sharan Burrow
General Secretary, International Trade Union Confederation; Co-Chair of the Annual Meeting 2016

14 World Economic Forum Annual Meeting 2016


addressed. People, particularly the No to Cassandras “There has never been a
young, are most vulnerable when
they have lost hope and feel alienated At the Annual Meeting, President
time of greater promise,
from society. Time and again, Meeting Nicos Anastasiades of Cyprus and the or greater peril.”
participants stressed the importance Turkish-Cypriot leader Mustafa Akinci
of access to education, healthcare, announced that they were close to an
employment, entrepreneurship and a agreement to end the divided island’s Klaus Schwab,
living wage to every citizen. decades of conflict. It was a reminder Founder and
Executive
that security is always possible despite Chairman, World
Good governance, inclusive economic what seem like intractable problems Economic Forum
growth and decisive action to end and technological innovations that
inequality were also emphasized. bring game-changing consequences.

The various religions have a key role There is no lack of other successes,
as well. One panel discussion brought including the return of peace in the
together the Grand Mufti Shawki Balkans, the end of the civil war in
Ibrahim Abdel-Karim Allam of Egypt, Sri Lanka, the political settlement in
Islamic scholar Ayatollah Ahmad Iravani Northern Ireland and the waning of the
of Iran, and Archbishop of Canterbury insurgency in Colombia. “Problems
Justin Welby. have been solved before; they can
be solved again,” said Espen Barth
All three said religious leaders and Eide, Head of Geopolitical Affairs and
believers must heal the Sunni-Shia Member of the Managing Board of the
divide within Islam and the gap World Economic Forum.
between Islam and Christianity. They
must prevent the hijacking of religion “The fact is, change is occurring in the
in the geopolitical fight for influence world for the better, and it is occurring
between states, and the misuse of faster, moving faster than perhaps ever
religion to legitimize violence and hate. before,” said US Secretary of State
John Kerry. “I don’t believe that the
Third, security institutions and road ahead should be defined by the
approaches must be reconfigured to Cassandras who see only turmoil and
be able to respond to the challenges challenge.”
posed by the Fourth Industrial
Revolution and leverage its capabilities. Without in any way underestimating the
Da’esh should be confronted in social challenges that lie ahead, the world’s
media and the internet. The intelligence citizens and their leaders should keep
services should be open as much as this in mind as they grapple with the
possible to engage with the public massive changes that are redefining
using Fourth Revolution tools. the very foundation of global security.

The intelligence community should


strive to develop a proper and
proportionate role, one that strikes the
right balance between the occasional
need to intercept communications in
aid of keeping the peace and the right
of citizens to privacy.

Finally, international agreements are


required to deal with cyberattacks on
critical infrastructure, develop new
rules of engagement in the deployment
of weaponized artificial intelligence
devices, and manage other Fourth
Revolution innovations that have
implications for global security. The
International Campaign for Robot
Arms Control advocated a total ban on
autonomous weapons.

Mastering the Fourth Industrial Revolution 15


16 World Economic Forum Annual Meeting 2016
Vikram Chandra, Presenter and Editor, New Delhi Television (NDTV), India; Arun Jaitley, Minister of Finance, Corporate Affairs and Information and Broadcasting of India; Nouriel
Roubini, Professor of Economics and International Business; Leonard N. Stern School of Business, New York University, USA; Sunil Bharti Mittal, Chairman, Bharti Enterprises,
India; John T. Chambers, Executive Chairman, Cisco, USA

Another economic crisis?

China’s economy is slowing and risks a hard landing. Like other economists in Davos, Roubini thinks a hard
Monetary policies in the United States, Japan and Europe landing in China is not likely. “My view for the last few years
are diverging. The United Kingdom may exit the European in China is that we will have neither a hard landing nor a
Union. Oil prices have fallen 70%. Financial markets are soft landing,” he said. “I would say China is going to have a
swooning. Is the global economy headed for yet another bumpy landing.”
crisis?
But everyone is acutely aware of the risks. In Europe,
The broad consensus at the Annual Meeting of the World Lagarde pointed to the UK’s possible exit from the
Economic Forum in Davos? Not really. European Union and the influx of people fleeing war in Syria
and other places as red flags. However, she added: “If the
“We see global growth in 2016 as modest and uneven,” said refugee crisis is handled well and the integration process
Christine Lagarde, Managing Director of the International is conducted in a cohesive and organized way, it will be an
Monetary Fund (IMF). “There is modest optimism but upside for growth.”
significant risks.” The IMF expects 3.4% growth in world
GDP this year and 3.6% in 2017. George Osborne, Chancellor of the Exchequer of the UK,
argued that the reforms Britain is seeking from the EU
Resilient economic activity in the United States would help would mean a “yes” vote in the 2017 referendum. “I am
the world’s largest economy grow 2.6% in both 2016 and optimistic we will get a deal for Britain and for the EU,” he
2017. China, the second-largest economy, is forecast to said. “I want our continent to be a source of innovation,
slow to 6.3% and 6.1% in the next two years, after GDP growth and jobs. If people see we are delivering that
expanded 6.9% in 2015. change, they will want to stay in a reformed EU.”

The world’s two other engines of growth, Europe and The IMF expects 2016 growth of 4.3% in emerging markets,
Japan, are expected to grow 1.5% and 1%, respectively. held back by forecast recessions in Brazil and Russia. But
All this was good enough for Martin Wolf, Chief Economics even as Chinese growth decelerates, India is expected to
Commentator at the Financial Times. “The basic lesson is expand 7.5% and South-East Asia 4.8% this year.
not to be worried about markets,” he said. “We have some
big issues, but the United States, Europe and China look “We need a high growth rate sustained over a long period
OK and they are the core of the world economic system. of time,” said Arun Jaitley, India’s Minister of Finance,
So, it should be all right – cheer up.” because poverty is still endemic in the world’s second most
populous nation. Ensuring prosperity for all is what it’s all
Even Nouriel Roubini, one of the few economists who about.
foresaw the 2008 global financial crisis, was relatively
optimistic. He cautioned against reading too much into the
financial market meltdown so far this year. “Markets tend
to be manic depressive,” he said. “They go from excessive
optimism to excessive pessimism.”

Mastering the Fourth Industrial Revolution 17


02

01 03

04

05 06

07

01: Klaus Schwab, 03: Priorities for the 05: Zhang Xin, Chief 07: Satya Nadella,
Founder and Executive United States in 2016 Executive Officer and Chief Executive Officer,
Chairman, World session Co-Founder, SOHO Microsoft Corporation,
Economic Forum; Ashton 04: Jacob J. Lew, US China, People’s Republic USA
B. Carter, US Secretary Secretary of the Treasury of China 08: Javad Zarif, Minister
of Defense talking with Thomas L. 06: Joel Sartore, of Foreign Affairs of the
02: H. Cuneyd Zapsu, Friedman, Columnist, Contributing Islamic Republic of Iran
Chairman, Cuneyd Zapsu Foreign Affairs, New York Photographer, National
Danismanlik AS, Turkey; Times, USA Geographic Magazine,
Ahmet Davutoglu, Prime USA
Minister of Turkey
08

18 World Economic Forum Annual Meeting 2016


01: Fiona A. Harrison,
Benjamin M. Rosen
Professor of Physics and
Astronomy, California
Institute of Technology
(Caltech), USA
02: Participants at the
Annual Meeting 2016
of the World Economic
Forum in Davos
03: Shawki Ibrahim
Abdel-Karim Allam,
Grand Mufti, Egyptian
Religious Edicts
Authority (Dar Al Iftaa Al
Misreya), Egypt; Justin
Welby, Archbishop of
01
Canterbury, United
Kingdom
04: Hiroaki Nakanishi,
Chairman and Chief
Executive Officer, Hitachi,
Japan
05: Fareed Zakaria,
Anchor, CNN
International, CNN, USA;
Benjamin Netanyahu,
Prime Minister of Israel

02

03

04

05

Mastering the Fourth Industrial Revolution 19


Solving Problems of the Global Commons

Governance of a
brave new world
The global commons is an ever-shifting landscape. Borderless,
connected and interdependent, it is mapped by the systems that
drive our world. This new geography, powered by technology,
needs coherent, transparent and inclusive global governance.
Are we up to it?

In 2015, the international community Painful lessons revolution we have faced to date.” The
committed to increased financing response is new jobs for the green
for development, agreed to in The Ebola crisis is a painful reminder economy.
Addis Ababa; the 17 Sustainable of the world’s initial slow reaction
Development Goals (SDGs), adopted as an international, interconnected Christine Lagarde, Managing Director
within the framework of the 2030 community. The virus raised its of the International Monetary Fund,
Agenda for Sustainable development ugly head again in January 2016 – said that COP21 “was a big boost but
in New York; and the Paris Climate have we learned our lessons? Are now we need to invest in infrastructure
Agreement (COP21). we prepared? Climate change is a to deliver”.
persistent existential threat. Are we
A very ambitious agenda for turbulent doing enough? Will we do enough? The Asian Infrastructure Investment
and troubling times. Geopolitically, Bank (AIIB) is open for business and
our world is becoming increasingly A global network of systems, including could set an example for quality
complex and potentially vulnerable. finance and trade, underpins our investments in the economy of the
What used to be local is now global. interconnectedness. Do we have the future. Jin Linquin, AIIB president, said:
The tragic Syrian catastrophe, for tools to manage them? Sharan Burrow, “AIIB will be clean, lean and green as it
example, reverberates across the General Secretary of the International seeks to invest in sustainable projects.”
world. When China decides to Trade Union Confederation and a Jin noted that while Asia is “awash
transition its economy, global financial Co-Chair of the Annual Meeting, put in liquidity”, money is not capital.
markets roil in response. it bluntly: “There are no jobs on a Long-term finance is paramount.
dead planet. Achieving the SDGs and Transparency and good governance
realizing the promises of COP21 will are a magnet for investment.
require incredible systems change
… it will be faster than any industrial

“The Fourth Industrial Revolution should


be a revolution of values.”

Amira Yahyaoui
Founder and Chair, Al Bawsala, Tunisia; Co-Chair of the Annual Meeting 2016

20 World Economic Forum Annual Meeting 2016


Private sector potential Lagarde said that the policy Education and training
frameworks for the Fourth Industrial
The private sector must take the Revolution must change. “We don’t Some advocate better access to
lead, backed by governments and measure the value of things very well,” opportunities through education and
civil society. There was enormous she said. “We will need to change the jobs; others argue for redistribution,
momentum from the private sector way we look at the economy.” for example, through the tax system.
during the Paris Climate Agreement However, everyone agrees that
negotiations, according to Paul Global trade is slowing down and regressive taxation exacerbates
Polman, Chief Executive of Unilever. popular support for trade is waning. inequality. Where they disagree is how
“We understood the enormous costs Trade is on the public’s radar, but to address it. As Nobel Prize winning
and threats involved, but also the that is not necessarily a positive economist Joseph Stiglitz said: “Our
enormous opportunities presented in development when many consumers economic system isn’t working for the
changing our system,” he said. are uninformed about its manifold majority of our citizens. You have to
benefits. Europeans are demonstrating ask why. If we had fair tax systems, we
Global financial systems are against the EU’s negotiations with the wouldn’t need redistribution.”
vulnerable – a painful lesson learned US on the controversial Transatlantic
from 2008. Disruptive innovation in Trade and Investment Partnership There is reason for hope. Chrystia
the development of applications, (TTIP). Freeland, Canada’s Trade Minister,
processes, products and business said that during her door-to-door
models sparks debates about the role Trade benefits campaigning in the October 2015
of the regulator and whether financial federal election in Rosedale, Canada’s
regulation can guarantee safety across European Commissioner for Trade most affluent neighbourhood,
the system and promote growth. Cecilia Malmström pointed out that she warned voters that a Liberal
These profound technological and while trade negotiators are busy government led by Justin Trudeau
strategic transformations in financial negotiating, the public is left behind. would raise taxes. She asked whether
services raise questions about what “We need to explain that trade is people would rather live in a society
regulatory reforms can foster inclusion good, but the public doesn’t trust of inclusive prosperity or a gated
and avert future shocks. the negotiators.” Many consumers community of the 1%. The result?
are concerned about the provenance Freeland won the election.
A lighter touch of the goods they buy, but most are
unaware of the multitude of benefits
Regulators and industry players are trade can deliver to developed and
debating just how much regulation developing countries.
is needed to steer a steady course.
However, everyone agrees that the Both Malmström and Roberto
global payment system should be Azevêdo, Director-General of the
regulated because it operates as a World Trade Organization, agreed that
public utility. As in most debates about it is time to turn the narrative around
regulation, how much is too much and make the case for trade. TTIP
and how much is enough? A light promises huge returns. The challenge
regulatory touch is needed. is how to communicate these potential
benefits to consumers.
Emerging economies such as India
and China have been rebooting No one can argue against the concept
their economies. India is planning of inclusive growth – the top 1% and
huge infrastructure projects, setting the so-called “bottom of the pyramid”
up appropriate institutions and are leitmotif in conversations about
enacting legislation to fuel growth. inequality and pervasive poverty.
China, recently the subject of Inequality is widening, which is bad “The best antidote to
much handwringing in the financial for growth. Where there is growth,
inequality fuels precariousness
hate is tolerance.”
community, cut its interest rate to
stimulate local demand, something and fragility in communities. Where
Lagarde hailed as “a normal and economists, policy-makers and others Sheryl Sandberg
proper way” to move towards disagree is how to achieve it. Chief Operating
Officer and
sustainable growth.
Member of the Board,
Facebook, USA

Mastering the Fourth Industrial Revolution 21


What on Earth are we doing?
The new Earth Time-Lapse series at the Annual Meeting The Earth Space tool puts together NASA Landsat images
2016 offered a startling perspective on how the problems and graphic overlays. Google Earth Engine allows for
of the Global Commons can be tackled through the zooming in or out and moving back and forth in time. The
application of breakthrough science and technology. interactive map is the product of a collaboration between
the Carnegie Mellon University’s Robotics Institute, Google
The visual exploration of Earth through high-resolution and the US Geological Survey.
time-lapse satellite imagery of Earth revealed patterns of
transformation over the past three decades in areas such as An immediate application of Earth Space is to combat illegal
coral reefs, urban sprawl, deforestation, retreat of glaciers logging. By monitoring deforestation in Africa every two
and fires at night. The maps make visible the driving forces weeks, it has been possible for government to track logging
of climate change. The impact of the two leading sources and catch the poachers as they return to the forest to haul
of greenhouse gas emissions – the energy industry and out lumber.
deforestation – is dramatic.
“The sheer volume of visual data is daunting to explore by
When the screen displays fires at night, bright orbs light conventional means,” said Rebecca Moore, engineering
up along the northeastern coast of Africa and in the upper manager of Google Earth Engine. “Together we can now
Midwest of the United States, pinpointing the concentration offer an intuitive, effortless method to explore the planet in
of flaring of gas at oil installations in Egypt and fracking space and time.”
operations in North Dakota.

22 World Economic Forum Annual Meeting 2016


Welcome to my world
Virtual reality has the power to transport people to places bring back to life and preserve human culture,” said Paola
such as the remote Great Sandy Desert of Western Antonelli, a senior curator at the Museum of Modern Art in
Australia and the refugee camps of Syria. And what makes New York. “It allows us to see things that cannot be seen
civilization and the human experience is the connection easily elsewhere.”
between art and science.
Martin Vetterli of the Swiss National Science Foundation,
Thanks to the latest digital technology, cultural heritage wants to take collaboration and open source to a new level.
sites – from the ancient Mogao Caves at Dunhuang in He envisions a Wikipedia-like space for art that would have
China’s Gobi Desert to the temples and palaces of Hampi the appropriate standards and make available art for people
in Karnataka in India – can come to life like never before, to consume in high-quality form – like a non-commercial
bringing your next museum visit to a whole new level. Such version of Spotify, for instance.
advanced technology can allow the viewer to zoom into the
tiniest brushstroke and zoom back out to the panorama. All these efforts are part of the Fourth Industrial Revolution,
the digital revolution that is characterized by a fusion of
“This is proof how much digital technology with storytelling technologies that is quickly blurring the lines between the
and visualization can help us get closer to the arts and physical and digital worlds.

Mastering the Fourth Industrial Revolution 23


01

02

Chairman and Chief


Executive Officer, Publicis
Groupe, France; Marc R.
Benioff, Chairman and
Chief Executive Officer,
Salesforce, USA
05: Christiane Amanpour,
Chief International
Correspondent, CNN,
United Kingdom;
Tammam Saeb Salam,
President of the Council
03
of Ministers of Lebanon;
Haidar Al Abadi, Prime
Minister of Iraq
04 07: Linda A. Hill,
Professor of Business
Administration, Harvard
Business School, USA
08: Joseph R. Biden Jr.,
Vice-President of the
United States
09: Andy Serwer, Editor-
in-Chief, Yahoo Finance
News, USA; Alfonso Prat-
Gay, Minister of Finance
of Argentina; Kenneth
Rogoff, Thomas D. Cabot
Professor
of Public Policy and
Professor of Economics,
Harvard University, USA;
08 Barry M. Gosin, Chief
Executive Officer,
Newmark Grubb Knight
Frank, USA

06 07

01: Tidjane Thiam, Chief Professor, School of


Executive Officer, Credit International and Public
Suisse, Switzerland; Affairs (SIPA), Columbia
Herbert J. Scheidt, University, USA; Zhang
Chairman of the Board, Xin, Chief Executive
Vontobel Holding AG, Officer and Co-Founder,
Switzerland; Paul Bulcke, SOHO China, People's
Chief Executive Officer, Republic of China
Nestlé SA, Switzerland 04: Geoff Cutmore,
02: Silk Road musical Anchor, CNBC,
collaboration at the United Kingdom; Erik
Congress Hall Brynjolfsson, Director,
03: Kevin Delaney, MIT Initiative on the
President and Editor-in- Digital Economy,
Chief Quartz - Atlantic MIT - Sloan School
Media, USA; Nelson of Management,
Henrique Barbosa-Filho, USA; Sharan Burrow,
Minister of Finance of General Secretary,
Brazil; Enda Kenny, International Trade Union
Taoiseach of Ireland; Confederation (ITUC),
09 Joseph E. Stiglitz, Brussels; Maurice Lévy,

24 World Economic Forum Annual Meeting 2016


01: H.M. Queen Rania,
Al Abdullah Hashemite
Kingdom of Jordan;
Peter Maurer, President,
International Committee
of the Red Cross (ICRC),
Geneva
02: Alexis Tsipras, Prime
Minister of Greece
03: Muhtar A. Kent,
Chairman of the Board
and Chief Executive
Officer, The Coca-Cola
Company, USA
04: Karen I. Tse, Chief
Executive Officer,
01 02 International Bridges to
Justice; Amira Yahyaoui,
Founder and Chair, Al
Bawsala, Tunisia
05: H.S.H. Prince Albert
II of Monaco, Prince of
Monaco
06: Victor L. L. Chu,
Chairman and Chief
Executive Officer, First
Eastern Investment
Group, Hong Kong
SAR; Yoichi Funabashi,
Chairman, Rebuild Japan
Initiative Foundation
(RJIF), Japan
07: Laurence Fink,
Chairman and Chief
03 04
Executive Officer,
BlackRock, USA and
Ajay S. Banga, President
and Chief Executive
Officer, MasterCard
08: Martin Sorrell, Chief
Executive Officer, WPP,
United Kingdom; Meg
Whitman, President
and Chief Executive
Officer, Hewlett Packard
Enterprise; Michael
S. Dell, Chairman and
Chief Executive Officer,
Dell; Jean-François
Boxmeer, Chairman of
05 06
the Executive Board
and Chief Executive
Officer, HEINEKEN; Doug
McMillon, President and
Chief Executive Officer,
Wal-Mart Stores Inc.
09: Loretta Lynch, US
Attorney-General
10: Hannah Dawson,
Lecturer, History of
Political Thought, King's
College London, United
Kingdom
08

07

09 10

Mastering the Fourth Industrial Revolution 25


The Humanitarian Imperative

Tackling the global


refugee crisis
There are more humanitarian crises raging across the world
today than at any other time in modern history. Disasters are no
longer the concern of aid agencies alone. Everyone has a role,
from policy-makers to private sector, faith leaders to
film-makers, and ordinary people, all connected through
social media.
Dominating the humanitarian agenda Prime Minister, to warn that without a 2.5 million refugees on its soil and is
in 2016 is the global refugee crisis – solution in six to eight weeks the EU’s providing eduation to 700,000 of their
60 million people across the world passport-free Schengen area could children. Germany's Finance Minister
are displaced by war, violence and collapse. The EU is considering forcing Wolfgang Schäuble has called for a
environmental disaster. Civil war in refugees to seek asylum in Greece by new Marshall Plan to invest billions in
Syria has forced 11 million from their preventing their onward passage. the regions from where the refugees
homes. Four million have sought have come.
sanctuary in Turkey, Lebanon and There are rational solutions, but they
Jordan, while more have joined the need imagination and courage to Europe also needs to learn how to
1 million-plus refugees who fled to implement. “We are willing to create integrate refugees better. Austria has
Europe last year. Nearly 4,000 of them economic zones where refugees a good record of integrating migrants,
drowned in the waters off Greece. can find employment”, said Queen engaging with local Muslim leaders to
Rania of Jordan, whose country find young role models to encourage
Europe’s politicians – pressured hosts 1.3 million Syrians. Without the migrants how to behave. In the US,
by populists – are scrambling for independence and self-respect that David Lubell has created Welcoming
solutions. Germany, so welcoming to employment brings, refugees stuck America, an innovative NGO which
refugees last summer, is suffering a in camps lose hope and fall prey to works to make the “host soil” of
backlash. President Gauck, speaking recruitment by extremists. local communities a more fertile and
at Davos, called for quotas, saying welcoming environment for the migrant
“if democrats do not want to talk To make this idea happen, however, “seeds” to take root.
about limitations, then populists and requires investors to relocate supply
xenophobes will”. Border controls chains to the region and train refugees
have sprung up across the continent, in skills they can later take home.
prompting Mark Rutte, the Dutch Turkey has granted work permits to the

“The refugee crisis is not a Turkish crisis,


it is a global crisis.”

Ahmet Davutoğlu
Prime Minister of Turkey

26 World Economic Forum Annual Meeting 2016


Private sector engagement of hospitals, aid stockpiles and road “Young scientists don't
access in vulnerable areas. By saving
Humanitarian crises are getting more time, this app can save lives. only care about science,
protracted – often lasting decades. they really care about the
“As these crises multiply, aid agencies In Lebanon and Jordan, Mastercard
and MercyCorps are collaborating to
world.”
cannot meet humanitarian needs
alone. They need the assets and provide a million refugees with charge
knowledge that companies bring," cards and mobile money. The cards Elizabeth Blackburn
can be credited either with cash or President, the Salk
said Helen Alderson, a director with
Institute for Biological
the International Committee of the Red commodity e-vouchers, enabling users
Studies, USA
Cross (ICRC). In Côte d'Ivoire, ICRC to buy food and goods from local
has partnered with Philips, the Dutch traders. “If you can get cash in the
technology giant, to create 1,000 rural hands of people, it gives them greater
healthcare centres, networked to dignity and it empowers them to make
urban centres. For Philips, the model decisions about their own lives," said
is more about sustainable, enlightened Neal Keny-Guyer, Chief Executive of
self-interest than charity or corporate MercyCorps. “It helps local markets
social responsibility (see box below). and it helps counter gender-based
violence. If young women don’t
Rapid emergency response is always have money, it opens them up to
a challenge – both for governments exploitation."
overwhelmed by disaster and for
international agencies scrambling to Currently, only 3% of humanitarian
reach the crisis zone. Shaffi Mather, an aid is delivered in cash. But within 10
Indian entrepreneur, has launched a years, mobile money has the capacity
start-up called M-Urgency to provide to make the aid industry’s huge
emergency medical response. The warehousing and logistics operations a
model is based on Uber. One tap on thing of the past, bringing big savings
your smart phone connects you to the on shipping in aid, said Keny-Guyer.
nearest doctor or paramedic who can
come to your aid. The World Health Human face of suffering
Organization and the International Red
Cross/Red Crescent movement – with Despite great leaps forward in
its network of 17 million volunteers – technology, a recurring theme at
are on board. Mather has raised Davos this year was “staying human”.
$2 million and is rolling it out in India, We cannot hope to solve the planet’s
Dubai and Israel. protracted emergencies without
remembering our shared humanity
During disasters, M-Urgency’s with those caught in crisis.
healthcare professionals agree to
provide life-saving response for free. Film-maker Sharmeen Obaid Chinoy
Otherwise, there is a modest charge; believes passionately in the power of
in India, it’s just $5 per call-out. The images to effect change. In her film
model generates sustainable revenue featuring a female doctor treating
delivering a return to investors. But suicide-bomb victims in Karachi, and
what happens in crises when the polio vaccination activist Naseem
mobile phone network is down? “This Munir moving through narrow lanes
is the power of Davos," said Mather. with armed guards, Obaid Chinoy said:
During the Annual Meeting 2016, he “I wanted to show that Muslim women
met with Inmarsat, the British satellite can be this kick-ass force that you’ve
telecommunications company, which never seen before."
agreed to provide satellite links to
disaster zones to create a local In the Davos virtual reality space, a
wireless mobile network. film called Clouds Over Sidra brought
home to participants the human side
HelpNow is a new app that supports of suffering. The film follows a young
relief efforts by pulling together vital Syrian girl called Sidra around her
data – often crowdsourced – that’s refugee camp. The feeling of intense
needed in the hours after disaster proximity to her family and friends was
strikes. The aim is to build a common, very powerful.
open-source dataset to connect
resources with needs in real time. The
app can be preloaded with details
Mastering the Fourth Industrial Revolution 27
Connected healthcare centres
A new collaboration between the International Committee “Working with Philips’ designers has helped ICRC to realize
of the Red Cross (ICRC) and Philips, the Dutch technology what is possible in terms of technological innovation,” said
giant, is delivering life-saving healthcare to Côte d’Ivoire. ICRC Director Helen Alderson.
   
After the ICRC identified several key challenges facing In addition to providing valuable health services, the centres
prenatal and postnatal care in the West African country, will also create jobs. “Each of these life centres will require
Philips put 120 of its top designers to work to create operating, servicing, maintaining, which in turn creates local
technological solutions. The result: the Community Life employment,” said Ronald de Jong, Chairman of the Philips
Centre, a local facility to deliver basic healthcare, clean Foundation responsible for the initiative.
water and solar lighting for crisis-affected populations. The  
technology will link rural centres to larger hospitals to enable As well as delivering healthcare, the solar lighting has the
remote analysis of vital signs. The target is to create 1,000 add-on benefits of promoting economic and educational
centres in the next three years. activity after hours.
 

28 World Economic Forum Annual Meeting 2016


Experiential learning for participants in the A Day in the Life of a Refugee interaction simulation

Life as a refugee
A bearded man in balaclava and combat fatigues was and queue for food and medicine. They were then corralled
waving an AK-47, shouting: “Refugee, get down! Turn off into makeshift tents, all under the watchful eyes of “guards”
your light or you will get us all killed!” It was pitch dark, there played by actors, some of whom were once refugees
were 30 of us kneeling together on the ground. Suddenly, a themselves. One man recounted how the Lord’s Resistance
deafening barrage of gunfire, mortar fire, artillery exploded Army in Uganda turned him out of school at gunpoint and
around us. forced him to shoot members of his own family and tribe.

As leaders debated the issues of the day – plummeting While the creators of the simulation admitted the experience
oil prices, changing climate and global conflicts – in the was a fraction of the stress felt by real refugees, even within
Congress Centre, across the street at the Annual Meeting the 45-minute session one soon got a sense of how quickly
2016 a group got a glimpse of the struggles of what millions one can lose one’s identity and dignity.
go through each day.
At the end of the session, Alexandra Chen, a child trauma
According to the UN, the number of refugees and displaced specialist from Hong Kong, spoke about a young Syrian
exceeds over 60 million, mainly driven from the Syrian war boy she befriended in a refugee camp. When she had to
and other conflicts in the Middle East. leave the camp to travel to Davos, she asked him what he
would like her to bring back for him. “Just ask them not to
At the Crossroads “Refugee Run”, each participant was forget me,” he said.
assigned an ID card and made to pass through checkpoints

Mastering the Fourth Industrial Revolution 29


01 02

03 05

04

01: Susanne F. Wille, 02: Jean-Pierre 06: Forum Debate: A


Journalist and Anchor, Bourguignon, President, Cure We Can Afford:
Swiss Television SRF, European Research Overview session
Switzerland; Gordon Council, Belgium 07: Kofi Annan, Chairman,
Brown, UN Special 03: Sarah Kenderdine, Kofi Annan Foundation,
Envoy for Global Professor and Director, Switzerland; Secretary-
Education; Chair, Expanded Perception General, United Nations
Global Commission and Interaction Centre, (1997-2006)
on Financing Global University of New South 08: Ray Dalio, Chairman
Education Opportunity; Wales, Australia and Chief Investment 06
Alain Dehaze, Chief 04: Jim Yong Kim, Officer, Bridgewater
Executive Officer, Adecco President, World Bank, Associates, USA
Group, Switzerland; Washington DC 09: Hélène Rey, Professor
Johann N. Schneider- 05: Winnie Byanyima, of Economics, London
Ammann, President of Executive Director, Business School, United
the Swiss Confederation Oxfam International, Kingdom
and Federal Councillor United Kingdom;
of Economic Affairs, Charlotte Petri Gornitzka,
Education and Research Director-General,
of Switzerland, Jimmy Swedish International
Wales, Founder and Development
Chair Emeritus, Board Cooperation Agency
of Trustees, Wikimedia (Sida), Sweden; Katherine
Foundation, USA; Angela Garrett-Cox, Chief
Hobbs, Professor of the Executive Officer, Alliance 07
Public Understanding of Trust Investments, United
Philosophy, University Kingdom
of Sheffield, United 08
Kingdom

09

30 World Economic Forum Annual Meeting 2016


01: The Building More
Resilient Arab Economies
session
02: Nita A. Farahany,
Professor, Law and
Philosophy, Duke
University, USA
03: Emma Marcegaglia,
Chairman, Eni, Italy
04: Lynette Wallworth,
Artist, Studio Wallworth,
Australia; Nola Taylor,
Martumili Artists, Nyarri
Morgan, Artist, Martumili
Artists and Neelam
01 02 Chhiber, Managing
Director, Industree/
Mother Earth
03 04 05 05: Jose Manuel
Barroso, President of the
European Commission
(2004-2014), Portugal
06: Robert J. Shiller,
Sterling Professor
of Economics, Yale
University, USA
07: Ban Ki-moon,
Secretary-General,
United Nations, New York
08: Takehiko Nakao,
President, Asian
Development Bank,
Manila
09: The RED campaign
celebrates 10 years

08

06 07

09

Mastering the Fourth Industrial Revolution 31


Global Challenges

Embracing technology to
reshape a better future
Political, business and civil society leaders, working together on
the World Economic Forum’s Global Challenge Initiatives, are
having to rethink old models of behaviour to tackle the big
issues in a fast-changing world. With the help of technology,
they’re also making plans for the future.

The World Economic Forum has Social innovation reduced calorie counts in their
defined 10 global needs where it can products without seeing any decline
most help to accelerate public-private With that idea in mind, many in sales; a pharmacy chain ended the
collaboration. These are: Food Security corporations are moving away from the sale of tobacco products and saw its
and Agriculture; Economic Growth and old model of social activity as a charity stock price rise.
Social Inclusion; Employment, Skills or sideline. They are embedding social
and Human Capital; the Environment programmes into their core activities In healthcare, the focus is now not
and Natural Resource Security; Future and looking for buy-ins from all levels just on improved techniques, but on
of Health; Future of the Internet; of management. If senior management keeping costs down so more people
Future of the Global Financial System; integrates social innovation into long- can benefit. Big and better data is
Gender Parity; International Trade and term planning, with transparent metrics facilitating individually tailored precision
Investment; and Long-term Investing, to demand and measure progress, the medicines as well as smart wellness
Infrastructure and Development. whole company will respond. and preventive care programmes.
Using both population and individual
Participants at the Annual Meeting Most companies find that social data to examine health risks enables
exchanged notes on progress on these activities help not only their bottom earlier – and therefore cheaper –
pressing global challenges and on line but also their branding with intervention. Better treatment means
new strategies. The Fourth Industrial consumers, employees and investors. shorter hospital stays.
Revolution is already influencing their Examples are common. A medical
plans. Maurice Lévy, Chairman and device company, by working on an As technology improves and better
Chief Executive of Publicis Groupe, inexpensive device to reduce deaths data is made available to healthcare
said: “CEOs cannot just sit and during childbirth in the developing providers and individuals, the conflict
say, ‘we will wait for decisions from world, has developed a new business
politicians to create a better society’.” line; a group of food corporations

“We shouldn’t be afraid of the word ‘feminist’ –


men and women should be able to use the word
to describe themselves any time they want.”

Justin Trudeau
Prime Minister of Canada

32 World Economic Forum Annual Meeting 2016


between precision medicine and Access to banking Amira Yahyaoui, Founder and Chair
public health budgets may prove of Al Bawsala, and Co-Chair of the
to be an illusion. “This moment in Broader access to the financial system Annual Meeting 2016, summed it up:
the history of medicine is the most is another key development goal. If “The Fourth Industrial Revolution is
exciting time in the last 100 years,” said people do not have bank accounts or also a values revolution.”
Ezekiel Emanuel, Vice-Provost of the credit cards, they cannot take part in
University of Pennsylvania. the internet of things or any other part
of the Fourth Industrial Revolution.
Renewable energy Progress has been made – over 700
million people have joined the financial
The ability to digitize and analyse huge world in the past three years – and
amounts of data is also paving the global leaders have actionable, proven
way for renewables to provide an ever ideas to bring the remaining 2 billion
greater part of the planet’s energy people into the financial system.
needs. The biggest problem of solar
and wind power right now is that their These ideas all require cooperation
production is intermittent and usually between governments and financial
not at the same time or place as peak institutions: simplified regulatory
consumption. requirements for small accounts; the
use of government transfer payments
But distributed production is growing and tax policy as incentives to enter
fast, and smart batteries, tailored to the formal financial system; regulations
individual household needs, and smart to increase competition in the banking
grids are on their way to reinventing and telecom sectors; the creation of
the whole electricity industry. Instead a national electronic ID; turning local
of giant utilities generating and selling stores into digital financial services
energy, the world will soon see a hubs; and taking advantage of cell
grid of millions or even billions of phones to provide mobile banking.
households and companies alternately
consuming, producing and storing “We now have the tools, the strategy,
energy in the most efficient way and the data we need to achieve
possible. global financial inclusion,” Queen
Máxima of the Netherlands said.
Developing countries, which often do
not have the sunk costs of massive The use of new information
power grids, can move directly to technologies is spreading even to the
decentralized, distributed power very oldest economic sector, as mobile
generation. Solar panels in isolated phones allow farmers in developing
African villages are bringing electricity countries to access data on weather
to people without the need for a grid and markets, and to receive training
or utility company. Rice farmers in the and even insurance.
Philippines are generating electricity
locally from rice husks. Governments and businesses must
work together so the new technologies
But governments have to act to will spread while reducing inequality.
accelerate the advance of new For that, old-fashioned human values
technologies. They should eliminate of empathy and tolerance are needed.
fossil fuel subsidies and provide new
regulations for an increasingly complex Social media has been given a bad “COP21 was a success,
industry. “A more systematic approach
is required to integrate renewable
press for spreading extremist views, but that was the easy
but it has also fuelled democracy,
energy sources into an overall smart citizen watchdog and civil rights part.”
grid,” said Hiroaki Nakanishi, Chairman movements. The potential for
and Chief Executive of Hitachi, and transparency can be a huge aid Christina Figueres
Co-Chair of the Annual Meeting 2016. Executive Secretary,
in fighting corruption, incentivizing
United Nations
corporate responsibility and reducing Framework
tax evasion. Technology can and Convention on Climate
must make all of us not just more Change (UNFCCC)
prosperous, but more engaged and
responsible global citizens.

Mastering the Fourth Industrial Revolution 33


Theresa Whitmarsh, Executive Director, Washington State Investment Board, USA; Saadia Zahidi, Head of Employment and Gender Initiatives, Member of the Executive
Committee, World Economic Forum; Mara Swan, Executive Vice-President, Global Strategy and Talent, ManpowerGroup, USA

Breaking down gender barriers


Studies show that training programmes to fight Solutions are available. Studies that show the advantage of
unconscious gender bias work – for about 24 hours. Then gender parity to companies’ bottom lines should be better
the old biases return. And the barriers that keep women publicized and more data should be collected. Companies
from achieving parity with men, especially at the highest must intervene – and in some areas consider quotas
levels of management, are problems not just for women. – in the promotion process to ensure that women are
Data shows that teams with a significant number of women represented at every level of advancement. Management
make better decisions than those without. “If you engage must provide flexible work-life arrangements, which many
and build diverse teams, you will outperform. So do it young men want too.
because it will help you,” Sheryl Sandberg, Chief Operating
Officer of Facebook, said. The good news is that more and more companies are
getting the message. Members of the World Economic
If no action is taken, the problem will get worse. Fields in Forum’s Oil & Gas community released a “Call to Action” to
which women have achieved success, such as professional close the gender gap within the industry. The declaration,
services, are forecast to lose jobs, while the STEM fields signed by 22 companies worldwide, shows that even the
(science, technology, engineering and mathematics), in most male-dominated industries can work to break down
which women are under-represented, are gaining jobs. the barriers.

Education is clearly important, but even companies that see


gender parity at entry-level positions lose more and more
women the further up the corporate ladder employees rise.

34 World Economic Forum Annual Meeting 2016


Nadine Hani, Senior Presenter, Al Arabiya News Channel, United Arab Emirates; Ahmed Heikal, Chairman and Chief Executive Officer, Qalaa Holdings S.A.E., Egypt; Khalid Al
Rumaihi, Chief Executive, Bahrain Economic Development Board, Bahrain; Suhail Bin Mohammed Al Mazrouei, Minister of Energy of the United Arab Emirates; Anas Khalid Al
Saleh, Deputy Prime Minister; Minister of Finance; Acting Minister of Oil of Kuwait

Building vibrant Arab economies


Between political unrest and plummeting oil prices, most partnerships in infrastructure. Morocco is working to have
Arab economies today only make the news for misfortunes. over 50% of its electricity consumption from renewables.
But beneath the headlines, innovative governments and
companies are moving forward to reform their economies. Corporations, too, are playing a role. The members of
the World Economic Forum Middle East and North Africa
Many Arab countries heavily subsidize the cost to Regional Business Council are training over 100,000 young
consumers of energy – and there’s no better time to people to enter the workforce. And the need for reform
end those subsidies, which encourage waste and divert is urgent. Youth unemployment is over 30% and rising,
resources, than at a time of low energy prices. “We need and some of the unemployed will be targets for extremist
to take advantage of the reduction in oil prices and build recruiters. Outdated labour and bankruptcy laws, too much
an economy that is vibrant,” said Suhail bin Mohammed red tape, poor education systems and an inefficient justice
Al Mazrouei, Energy Minister of the United Arab Emirates. system all hold back Arab economies.
Bahrain and Kuwait are also working to reduce or end
subsidies and invest the savings in diversifying their But if these areas are reformed, and if some of the region’s
economies. trillions in local capital is invested in the IT infrastructure
needed to take advantage of the Fourth Industrial
Jordan opened up its telecom and IT industry over a Revolution, the region’s youth bulge would no longer be a
decade ago and now has a thriving technology sector, problem. It would be an opportunity.
as well as an advanced programme of public-private

Mastering the Fourth Industrial Revolution 35


01

02

05

03 04

06 07

08

09

01: Vishal Sikka, Chief 03: The Digital Path to Netherlands; Manuel
Executive Officer and Learning session Valls, Prime Minister of
Managing Director, 04: Rosanne Haggerty, France; Alexis Tsipras,
Infosys, USA; Guy President and Chief Prime Minister of Greece;
Ryder, Director-General, Executive Officer, Emma Marcegaglia,
International Labour Community Solutions, Chairman, Eni, Italy;
Organization (ILO), USA Wolfgang Schaeuble,
Geneva; Ali Velshi, 05: Muhammad Yunus, Federal Minister of
Anchor, Al Jazeera Chairman, Yunus Centre, Finance of Germany
America, USA; Laura Bangladesh 10: Gordon Brown,
D'Andrea Tyson, 06: Jiang Jianqing, UN Special Envoy for
Professor and Director, Chairman of the Global Education; Chair,
Haas School of Business, Board, Industrial and Global Commission
University of California, Commercial Bank of on Financing Global
Berkeley, USA; Arne China, People's Republic Education Opportunity
Sorenson, President and of China
Chief Executive Officer, 07: Navigating the
Marriott International, Geosecurity Landscape
USA; Andrew McAfee, 08: Naomi Oreskes,
Principal Research Professor of the History
Scientist, MIT Initiative of Science, Harvard
on the Digital Economy University, USA
Massachusetts Institute 09: Robin Niblett,
of Technology (MIT), USA Director, Chatham
02: Li Yuanchao, Vice- House, United
President of the People's Kingdom; Mark Rutte, 10
Republic of China Prime Minister of the

36 World Economic Forum Annual Meeting 2016


01: Andrew Steer,
President and Chief
Executive Officer, World
Resources Institute, USA
02: Jon Hilsenrath,
Chief Economic
Correspondent, The Wall
Street Journal, USA;
Sylvia Mathews Burwell,
US Secretary of Health
and Human Services
03: Klaus Schwab,
Founder and Executive
Chairman, World
Economic Forum;
Joachim Gauck,
President of the Federal
Republic of German
04: John Dramani
Mahama, President of
Ghana
05: Paul Polman,
Chief Executive Officer
Unilever, United
Kingdom; Richard Curtis,
Writer and Director, USA
06: Mara Swan,
Executive Vice-President,
01 Global Strategy and
Talent, Manpower, USA
07: Shannon May,
03 Co-Founder and Chief
Development Officer,
Bridge International
Academies, Kenya
08: Humanitarian Hub
09: Ahmad Iravani,
President and Executive
Director, Center for the
Study of Islam and the
Middle East (CSIME),
USA; Shawki Ibrahim
Abdel-Karim Allam,
02 Grand Mufti, Egyptian
Religious Edicts Authority
(Dar Al Iftaa Al Misreya),
04 06 Egypt
10: The 21st-Century
Dream session

05 06

07

08

09 10

Mastering the Fourth Industrial Revolution 37


01: Edward Boyden,
01 Associate Professor,
Media Lab and
McGovern Institute,
Massachusetts Institute
of Technology (MIT), USA
02: Erna Solberg, Prime
Minister of Norway
03: Nils Smedegaard
Andersen, Group Chief
Executive Officer, A.P.
Møller-Maersk, Denmark
04: Participants at the
Annual Meeting 2016
05: Clouds Over Sidra
virtual session
06: Susan Wojcicki,
Chief Executive Officer,
YouTube, USA
07: Roberto Azevêdo,
Director-General, World
Trade Organization
(WTO), Geneva
08: Chanda Kochhar,
Managing Director and
Chief Executive Officer,
ICICI Bank, India
09: Neri Oxman,
Associate Professor of
Media Arts and Sciences,
Massachusetts Institute
of Technology (MIT)
Media Laboratory, USA

02 03

04

05

06 07 08

09

38 World Economic Forum Annual Meeting 2016


02

01 03

04

05

06

08

07 09

01: Member of the Peking Economic Forum; Joe Officer, Nielsen, USA; Founder, Zady.com, USA 09: Kevin Delaney, Xin, Chief Executive
Opera ensemble Kaeser, President and Richard Solomons, 06: Rebecca President and Editor-in- Officer and Co-Founder,
02: Rahul Bajaj, Chief Executive Officer, Chief Executive, Blumenstein, Deputy Chief Quartz - Atlantic SOHO China, People's
Chairman, Bajaj Auto, Siemens, Germany InterContinental Hotels Editor-in-Chief, Wall Media, USA; Nelson Republic of China
India; Al Gore, Vice- 03: Future of Global Group, United Kingdom; Street Journal, USA Henrique Barbosa-Filho,
President of the United Trade session Taavet Hinrikus, Chief 07: Klaus Schwab, Minister of Finance of
States (1993-2001); 04: Laurent Fabius, Executive Officer, Founder and Executive Brazil; Enda Kenny,
Chairman and Co- Minister of Foreign TransferWise, United Chairman, World Taoiseach of Ireland;
Founder, Generation Affairs and International Kingdom; Devin Wenig, Economic Forum; Joseph E. Stiglitz,
Investment Management, Development of France President and Chief John F. Kerry, US Professor, School of
USA; Jim Hagemann 05: Amy Wilkinson, Executive Officer, eBay, Secretary of State International and Public
Snabe, Chairman, Lecturer, Stanford USA; Soraya Darabi, 08: A Day in the Life of a Affairs (SIPA), Columbia
Centre for Global Graduate School of Impact Investor & Co- Refugee experience University, USA; Zhang
Industries, Member of the Business, USA; Mitch
Managing Board, World Barns, Chief Executive

Mastering the Fourth Industrial Revolution 39


01 02

04

03

01: David Miliband,


President, International 05
Rescue Committee, USA;
Witold Waszczykowski,
Minister of Foreign Affairs
of Poland; Lyse Doucet,
Chief International
Correspondent, BBC
News, United Kingdom;
Emmanuel Macron,
Minister of the Economy,
Industry and Digital
Affairs of France;
Federica Mogherini,
High Representative
for Foreign Affairs
and Security Policy;
Vice-President of the
European Commission
02: Enrique Peña
Nieto, President of
Mexico; Moisés Naím,
Distinguished Fellow,
Carnegie
Endowment for
International Peace, USA
03: Lyse Doucet,
Chief International
Correspondent, BBC
News, United Kingdom;
Justin Trudeau, Prime 04: Daniel Kablan 06: Chuck Robbins,
Minister of Canada; Duncan, Prime Minister Chief Executive Officer,
Sheryl Sandberg, Chief of Côte d’Ivoire Cisco, USA; Pierre
Operating Officer and 05: Bertrand Piccard, Nanterme, Chairman
Member of the Board, Initiator, Chairman and and Chief Executive
Facebook, USA; Melinda Pilot, Solar Impulse, Officer, Accenture,
Gates, Co-Chair, Switzerland; André France; Susan Wojcicki,
Bill & Melinda Gates Borschberg, Co-Founder, Chief Executive Officer,
Foundation, USA; Jonas Chief Executive Officer YouTube, USA
Prising, Chairman and and Pilot, Solar Impulse,
Chief Executive Officer, Switzerland
ManpowerGroup,
USA; Zhang Xin, Chief
Executive Officer and
Co-Founder, SOHO
China, People's Republic
of China

06

40 World Economic Forum Annual Meeting 2016


02

04

01
03

06

09

01: Min Zhu, Deputy Stephenson, Chairman


Managing Director, and Chief Executive
International Monetary Officer, AT&T Inc., USA
Fund (IMF), Washington 08: Klaus Schwab,
DC; Kenneth Rogoff, Founder and Executive
Thomas D. Cabot Chairman, World
Professor of Public Economic Forum;
Policy and Professor Jennifer Doudna,
of Economics, Harvard Professor of Chemistry
University, USA and of Molecular and
02: Nadine Hani, Senior Cell Biology, University of
Presenter, Al Arabiya California, Berkeley, USA;
News Channel, United Henry T. Greely, Deane
Arab Emirates F. and Kate Edelman
03: Zhang Fangyou, Johnson Professor of
Chairman, Guangzhou Law, Stanford University,
Automobile Industry USA; Justine Cassell,
Group Co. Ltd, People's Associate Dean,
05 07 Republic of China; Technology, Strategy
Zhang Lili, Chairperson, and Impact, School
Tianjin Port (Group) Co. of Computer Science,
08 Ltd, People's Republic Carnegie Mellon
of China; Chen Feng, University USA; Angela
Chairman of the Board, Hobbs, Professor of the
HNA Group Co. Ltd, Public Understanding of
People's Republic of Philosophy, University
China of Sheffield, United
04: Ranil Kingdom; Amira
Wickremesinghe, Prime Yahyaoui, Founder and
Minister of Sri Lanka Chair, Al Bawsala, Tunisia
05: Zoe Keating, Cellist 09: Lakshmi Mittal,
and Composer, USA Chairman and Chief
06: Paul Kagame, Executive Officer,
President of the Republic ArcelorMittal, United
of Rwanda Kingdom; Delos M. (Toby)
07: Mark R. Warner, Cosgrove, Chairman and
Senator from Virginia Chief Executive Officer,
(Democrat), USA Cleveland Clinic, USA
talking to Randall L.

Mastering the Fourth Industrial Revolution 41


Arts & Culture in Davos

More than 40 cultural leaders joined the World Crystal Award winner installation artist Olafur
Economic Forum’s business, government Eliasson.
and civil society communities at the Annual
Meeting 2016 in Davos to help shape the Reflecting the meeting’s theme, Mastering the
global agenda. Fourth Industrial Revolution, many expressed
their views through digital exhibitions and
Personalities included actor Kevin Spacey, immersive installations intended to create
author Elif Shafak, film-maker Sharmeen awe and reflection. Using visual, literary
Obaid-Chinoy, vlogger John Green, and sonic journeys, they offered alternative
photographer Platon, artist Lynette Wallworth narratives and perspectives on today’s myriad
and many others. Through their active challenges, not just cultural but also economic
engagement, they added their inspiring voices and political.
and insights on a range of issues, including
migration, climate change, cultural heritage Arts and culture also has the potential to
and freedom of speech. impact youth. As Spacey said: “It’s also about
what the tools of theatre and arts and culture,
“Art offers one of the few places in our society as well as the artists, can do for a kid who
today where people from various backgrounds has no self-esteem, who suddenly through
can come together to share an experience a poetry project or a theatre workshop finds
while having different opinions. Disagreement a way to express themselves, finds a way to
is not only accepted but encouraged,” said stand up. That’s better for all of us.”

“Acting is a humanizing profession. I’m forced, by


the nature of my job, to be somebody else.”

Kevin Spacey
Actor

42 World Economic Forum Annual Meeting 2016


The Fourth Industrial Revolution 43
World Economic Forum
Insight : reports launched
at Davos

Global Risks Report 2016


Now in its 11th edition, The Global Risks Report 2016 draws attention to ways
that global risks could evolve and interact in the next decade. The report features
perspectives from nearly 750 experts on the perceived impact and likelihood
of 29 prevalent global risks over a 10-year timeframe, and examines the
interconnections among the risks.
http://www.weforum.org/reports/the-global-risks-report-2016

Resilience Insights
In the report, the Forum’s Global Agenda Council on Risk & Resilience takes on
key findings of the Global Risks Report 2016. The report’s insights can spark a
more in-depth discussion about how best to build and strengthen resilience to
today’s risks.
http://www.weforum.org/reports/global-agenda-council-on-risk-
resilience-resilience-insights

Internet Fragmentation: An Overview


The white paper provides the first systematic overview of the growth of internet
fragmentation, highlighting 28 risks that could lead to fragmentation. It concludes
that meeting the challenge of internet fragmentation will require vigilance,
analysis and international cooperation. The report was produced by the Forum’s
Future of the Internet Initiative.
http://www.weforum.org/reports/internet-fragmentation-an-overview

The Impact of Digital Content


The report focuses on the opportunities and risks of creating and sharing
information online, highlighting overarching mobile and digital technology trends
and the changes they mean for society.
http://www.weforum.org/reports/the-impact-of-digital-content-
opportunities-and-risks-of-creating-and-sharing-information-online

Digital Media and Society: Implications in a Hyperconnected Era


The report explores the changing relationship with media, entertainment and
information due to digitization and the implications this has on individuals
and society. It also highlights key sociological and behavioural evolutions in
individuals from increased digital use.
http://www.weforum.org/reports/digital-media-and-society-
implications-in-a-hyperconnected-era

44 World Economic Forum Annual Meeting 2016


The E15 Initiative
The policy option papers offer a detailed and comprehensive set of suggestions
for improved governance of the global trade and investment system in the
21st century. They are accompanied by a synthesis report, which summarizes
and interprets the significance of the proposals for progress on many of the
international community’s most important shared imperatives.
http://www.weforum.org/reports/the-e15-initiative-strengthening-the-
global-trade-and-investment-system-in-the-21st-century

The Future of Electricity in Fast-Growing Economies


This report recognizes the need for policy to balance the objectives in the
Forum’s energy architecture triangle: security and accessibility, short- and
medium-term affordability, and environmental sustainability, particularly in fast-
growing markets. These are trying to serve voracious new demand for electricity
as their economies grow, as more customers are connected to the grid and as
per capita consumption grows.
http://www.weforum.org/reports/the-future-of-electricity-in-fast-
growing-economies

The Future of FinTech: A Paradigm Shift in Small Business Finance


This report reviews the shift in small and medium-sized enterprises financing,
taking stock of what the finance industry has provided to date and how the
fintech industry has taken over some of the funding with its innovative business
models and products.
http://www.weforum.org/reports/future-fintech-paradigm-shift-small-
business-finance

The Future of Jobs


The Fourth Industrial Revolution will cause widespread disruption not only
to business models but also to labour markets over the next five years, with
enormous change predicted in the skill sets needed to thrive in the new
landscape. This is the finding of The Future of Jobs report.
http://www.weforum.org/reports/the-future-of-jobs

The New Plastics Economy: Rethinking the Future of Plastics


This report outlines a fundamental rethink for plastic packaging and plastics in
general, offering a new approach with the potential to transform global plastic
packaging material flows and thereby usher in the new plastics economy.
http://www.weforum.org/reports/the-new-plastics-economy-rethinking-
the-future-of-plastics

Mastering the Fourth Industrial Revolution 45


Acknowledgements

The World Economic Forum wishes to Goldman Sachs UPS


recognize the support of the following Google Inc. USM Holdings
companies as Partners and supporters Hanwha Energy Corporation VimpelCom
of the Annual Meeting 2016. HCL Technologies Ltd Visa Inc.
Heidrick & Struggles Volkswagen AG
Hewlett Packard Enterprise VTB Bank
Strategic Partners Hitachi Wipro
HSBC WPP
A.T. Kearney Huawei Technologies Yahoo
ABB IHS Zurich Insurance Group
The Abraaj Group Infosys
Accenture Itaú Unibanco
Adecco Group JLL Strategic Foundation
African Rainbow Minerals Johnson Controls Partners
Agility JPMorgan Chase & Co.
Alcoa KPMG International Bill & Melinda Gates Foundation
Alibaba Group Holding Limited Kudelski Group The Rockefeller Foundation
Allianz SE Lazard The Wellcome Trust
ArcelorMittal Lenovo
AUDI AG LIXIL Group
Bahrain Economic Development Board LUKOIL Strategic Technology
Bain & Company ManpowerGroup
Banco Bradesco S/A Marsh & McLennan Companies (MMC)
Partner
Bank of America MasterCard
Salesforce
Barclays McKinsey & Company
Basic Element Microsoft Corporation
BlackRock Mitsubishi Corporation
Bombardier Mitsubishi Heavy Industries
The Boston Consulting Group Morgan Stanley
BP Plc MSD
Bridgewater Associates Nestlé
BT Novartis
Burda Media Old Mutual
CA Technologies Omnicom Group
Centene Corporation PepsiCo
Chevron Prudential
Cisco Publicis Groupe
Citi PwC
Clayton, Dubilier & Rice LLC Qualcomm
The Coca-Cola Company Reliance Industries
Credit Suisse Renault-Nissan Alliance
Dalian Wanda Group Royal DSM
Dangote Group Royal Philips
Deloitte Saudi Aramco
Dentsu Group Saudi Basic Industries Corporation
Deutsche Bank (SABIC)
Deutsche Post DHL Sberbank
Doğuş Group Siemens
The Dow Chemical Company SK Group
Ericsson SOCAR
Essar Standard Chartered Bank
EY Swiss Re
Facebook Inc. Tata Consultancy Services
Flex Tech Mahindra
Fluor Corporation Thomson Reuters
GE UBS
General Motors Unilever

46 World Economic Forum Annual Meeting 2016


Further Information Contributors

The report was written by


Alejandro Reyes, Cesar Bacani, Daniel
Horch, Dianna Rienstra and Jonathan
Walter.

The Forum would also like to thank


the official writers of the Annual
Meeting 2016: Mary Bridges, Lucy
The event page of the Annual Meeting 2016 provides access to a richer level of Conger, Lucy Fielder, Kirsten Lees,
content from the meeting, including videos, photographs, insights and webcasts Mark Schulman, Gareth Shepherd,
of selected sessions. Mark Vlasic, David Watkiss and James
Workman.
http://wef.ch/am16

Editing and Production

Ann Brady, Editing


Mark Schulman, Editing
Kamal Kimaoui, Head of Production
and Design
Ruslan Gaynutdinov, Designer

This report is also available to download in PDF or HTML format:

http://wef.ch/am16report

Mastering the Fourth Industrial Revolution 47


Upcoming Meetings

World Economic Forum on Africa


Kigali, Rwanda 11-13 May 2016

Rwanda has dramatically transformed since the 1994 genocide and civil war. It is emerging as
a regional high-tech hub and boasts one of sub-Saharan Africa’s fastest GDP growth rates. It is
one of the continent’s most competitive economies and a top reformer in improving the business
environment. Under the theme, Connecting Africa’s Resources through Digital Transformation, the
26th World Economic Forum on Africa will convene regional and global leaders from business,
government and civil society to discuss digital economy catalysts that can drive radical structural
transformation, strengthen public-private collaboration on key global and regional challenges, and
agree on strategic actions that can deliver shared prosperity across the continent.
For more information, email: Africa@weforum.org

World Economic Forum on East Asia


Kuala Lumpur, Malaysia 1-2 June 2016

The World Economic Forum will celebrate 25 years of shaping East Asia’s regional agenda in 2016
with both its international and regional multistakeholder communities. The forthcoming launch of the
ASEAN Economic Community exemplifies the region’s continued commitment to removing barriers to
the free flow of goods, services and people while improving sustainability, infrastructure and livelihood.
One year after assuming chairmanship of ASEAN, Malaysia will host the meeting, which will be an ideal
platform for senior decision-makers from various sectors to facilitate greater collaboration between
industry, government and civil society and to address regional challenges.
For more information, email: EastAsia@weforum.org

World Economic Forum on Latin America


Medellín, Columbia 16-17 June 2016

The World Economic Forum on Latin America brings together leaders from all sectors, as well as
academic thought leaders and millennials, to explore how a new prosperity agenda can be actively
shaped. Returning to Colombia and hosted in the city of Medellín, the meeting gathers at a remarkable
place and time: Medellín’s transformation over the past two decades is a good example of successful
21st-century urban innovation. At the same time, Colombia is close to an historic accord that
promises opportunities for sustained peace, economic progress and social inclusion. These inspiring
achievements teach valuable lessons and are a reminder that socio-economic advances require
constant attention as well as concerted and strategic action.
For more information, email: LatinAmerica@weforum.org

Annual Meeting of the New Champions 2016


Tianjin, People’s Republic of China 26-28 June

Established in 2007 as the foremost global gathering on science, technology and innovation, the
Annual Meeting of the New Champions convenes the next generation of fast-growing enterprises
shaping the future of business and society, and leaders from major multinationals as well as
government, media, academia and civil society. More than 1,500 participants from 90 countries will
convene in Tianjin to engage in a truly global experience, addressing today’s unprecedented set of
intertwined global challenges – economic, political, societal and environmental.
For more information, email: NewChampions@weforum.org

48 World Economic Forum Annual Meeting 2016


Mastering the Fourth Industrial Revolution 49
The World Economic Forum,
committed to improving the
state of the world, is the
International Organization for
Public-Private Cooperation.

The Forum engages the


foremost political, business and
other leaders of society to
shape global, regional and
industry agendas.

World Economic Forum


91–93 route de la Capite
CH-1223 Cologny/Geneva
Switzerland
Tel.: +41 (0) 22 869 1212
Fax: +41 (0) 22 786 2744
contact@weforum.org
www.weforum.org